Basics of Financial Aid the FAFSA and TAP

Basics of Financial Aid, the FAFSA and TAP Processes Mrs. Crandall-Bean | November 17, 2020 virtual lesson

We will talk about: Federal student aid • State student aid • Institutional aid • Scholarships from other sources briefly •

We will answer: • • • What is financial aid? Who can get it? How much can I get? How do I apply? What happens next? Where can I get more info?

What is financial aid? • Money to pay for college or a technical school 4 kinds of aid = • Grants • Work-study • Loans • Scholarships • Based on financial need, grades, test scores, special talents and achievements Info about types of aid: Student. Aid. gov/types

Grants= GOOD! = • = gift aid you do not have to pay back!!!!! • Grants are often based on your financial need and come from colleges or from the state or federal government mainly. The largest federal government grant is called the Pell Grant. The largest New York State grant is call TAP (Tuition Assistance Program). The maximum NYS TAP award is $5165. 00. The max Federal Pell amount is $6345. 00 per year.

WORK STUDY Work study= when a student with great financial need is offered a job on or off campus to provide some money for personal college expenses. Often 5 -15 hours /week. Funds are limited so if offered work study, I encourage you to take it!

SCHOLARSHIPS Scholarships* are often called “gift aid” because it is money that you do not have to repay which is be based on certain personal qualifications and/or accomplishments. (Ex. special talents, athletic ability, academic achievement, community service, ethnic background, or religion affiliation etc. ) • IMPORTANT!!!!Sometimes you must maintain a certain GPA, courseload/#of credits or other criteria to continue receiving certain scholarships. • READ THE FINE PRINT ON WHAT YOU MUST DO TO MAINTAIN YOUR SCHOLARSHIPS!!! •

Renewable? ? ? Or not. . • 2 TYPES OF SCHOLARSHIPS: RENEWABLE AND NONRENEWABLE. • RENEWABLE MEANS YOU CAN REAPPLY FOR A SCHOLARSHIP MORE THAN ONCE. IT MAY BE YEARLY OR EVERY TWO YEARS, UP TO FOUR YEARS ET CETERA. • NONRENEWABLE MEANS THE SCHOLARSHIP IS GIVEN ONE TIME ONLY/RECIPIENT/WINNER.

LOANS *Loans*for parents and students are money you borrow from the government or through private lenders (banks and other companies) that MUST be paid back with interest. Most students who attend college for a 4 -year degree come out with on average around $32, 000 worth of student loan debt. • Do NOT borrow any more money than necessary!!!!! For instance, if you qualify for a loan for $5, 500. 00, and you only need to borrow $2000. 00, only borrow $2000. 00!!!! •

Loan Tips • It is advised to accept government issued loans prior to taking out private loans because the government issued loan of the William D Ford Direct Student has a lower interest rate often. • Expect to have to take out some loans. Your education is an investment in your future and will most likely increase your earnings over the course of your lifetime but be smart about how you borrow. There are no longer many free rides for top students.

TYPES OF FEDERAL GOV’T LOANS • Subsidized- means the government or agency sponsoring the loan pays the interest on the loan for you while you attend college. Awesome! • Unsubsidizedmeans the interest on the loan is starting to build and accrue/add on as soon as you take out the loan in college. Not as awesome but still good….

“Gap” Alternative Loans • Gap/alternative or private loan- used as a last resort TO FILL IN THE “GAP” OF NEED ON YOUR BILL. Often issued by banks or private loan companies like Sallie Mae. • Student loans are in YOUR NAME and your responsibility to pay back!

Parent. Direct PLUS Federal Loans • • Parents can take out Parent Direct Plus or home equity or personal loans in their name for you as well. A Parent Direct Plus loan can be beneficial because if your parent has a good credit rating, then they can borrow the entire gap amount needed to pay your college bill. Check out this web link for more info on Parent loans at https: //studentaid. ed. gov/sa/types/loans/plus Federal Parent PLUS loan info from the student aid website: The U. S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program. Here’s a quick overview of Direct PLUS Loans: The U. S. Department of Education is your lender. You must not have an adverse credit history. The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received. If you or your child have already filled out the Free Application for Federal Student Aid (FAFSA®) form, you can apply for a PLUS loan on Student. Loans. gov.

MORE LOAN TIPS…. . • Price shop on-line if you need gap loans to look for the lowest interest rates. The rates are very competitive. Be wary of variable interest rates as the amount of interest can fluctuate greatly. Trying to find a solid lower fixed interest rate instead is often recommended. • Try not to use a different gap loan company every year of school as it makes it very hard to keep track of future payment schedules. • Remember you may need an adult co-signer if you take out a gap loan in your name. IMPORTANT!!!! Ask now the adults in your life if they are willing co-sign a loan for you. • Remember federal student loans are in YOUR name, not your parents, and do not disappear even if you were to file bankruptcy in the future or not finish your college degree. • Ask your parents if you have a college savings account called a NY SAVES 529 or other savings that is set aside for college costs.

1. Use savings, free grant and scholarship money first. 2. Use Federal student loans second. 3. Use private “alternative” loans LAST.

Be very cautious and price shop and research loan interest rates. Watch out for fixed versus variable interest rates!!!!! There are good loan/interest calculators on the web.

Excellent on-line loan tools: www. credible. com &www. suny. edu/smarttrack • Don’t forget that you need to plan financially long-term…. • The average student in the US working toward earning a bachelor’s degree takes 5. 1 years to complete their degree. Therefore, you need to think about not paying your college bills for one year but two, four, five six or more years. 50% of students who start a bachelor's degree don't complete and earn one. But they still have to pay back their loans. . .

Who can get federal student aid? • • • U. S. citizen/national or eligible noncitizen High school diploma or equivalent Eligible degree/certificate program in college/career school Student has valid Social Security number Males registered for Selective Service “SAP” Satisfactory academic progress in college/career school Info about eligibility: Student. Aid. gov/eligibility

Who can get other kinds of financial aid? States, colleges, and private scholarships have their own eligibility criteria. • Be sure you know what you need to do to qualify. • Info about finding scholarships: Student. Aid. gov/scholarships

How much federal student aid can I get? In general, depends on your financial need. • Financial need determined by “Expected Family Contribution” (EFC) and “Cost Of Attendance” (COA) • EFC comes from what you report on FAFSA® form. It is the estimate via a complex formula of what the federal govt estimates you and your family can afford to pay toward one year of college. • COA includes tuition, fees, room and board (dorm & meal plan/food, transportation, etc. all added together for the total price before aid for one year of college. COA – EFC = financial need

How much federal student aid can I get? Maximum amounts for the major programs for a dependent freshman in 2020 -21: • Federal Pell Grant: TBD (2020 -21 max: $6345) • Federal Work-Study: depends on funds available at school • Direct Subsidized and Unsubsidized Loans: $5, 500 total for college freshmen • Direct PLUS Loan (for parents): COA minus other aid received= gap loan Funds from other programs are available; see Student. Aid. gov/glance for details.

How much federal student aid can I get? For an early estimate, use FAFSA 4 caster: • Go to https: //fafsa. ed. gov/spa/fafsa 4 c/#/landing • Enter some financial information • Get an estimate

How much state, school, and private scholarship money can I get? Depends on the program; do your research! • Our New York state aid specific amounts will be provided at the end of this presentation. • Ask college financial aid offices for info about aid available at their schools. There is an immense amount of info on each college’s financial aid webpage. Examine each college of interests webpages in depth. • Free scholarship search at Student. Aid. gov/scholarships

How do I apply for federal aid? • Federal student aid: apply on-line at fafsa. ed. gov or https: //studentaid. ed. gov/sa/fafsa (=same site) • or use the phone mobile app for FAFSA called my. Student. Aid found at Play. Google. com

How do I apply for federal student aid? 1. • • Create a username and password called the FSA ID. Learn about the FSA ID and find the link to create one at https: //fsaid. ed. gov/npas/index. htm You and one of your parents must each create your own FSA ID; you can’t share one.

How do I apply for federal student aid? 2. • • • Gather the documents you need to apply. Find checklist of what’s needed on info graphic called “The FAFSA Process” at Student. Aid. gov/resources#fafsa-process-graphic (There is a checklist in your packet. ) Optional: Preview some of the FAFSA questions on the FAFSA on the Web Worksheet. (Get worksheet at Student. Aid. gov/resources#worksheet. (The worksheet is in your packet. )

Continued…. • If you provide an e-mail address when creating your FSA ID, it must be a unique email address (can’t provide same e-mail address for more than one person’s FSA ID). • Don’t tell anyone your FSA ID! This is your log in as well as your e-signature. You can reuse your FSA over every year you are in college when you redo your FAFSA.

How do I apply for federal student aid? 3. • Apply at fafsa. ed. gov which is also https: //studentaid. gov/h/apply-for-aid/fafsa Apply on or after October 1 but as early as possible to meet all deadlines. State deadlines are at fafsa. gov. New York’s is June 30 th. • College-specific deadlines are listed on schools’ websites. • • Use your (student’s) FSA ID to start the application; saves time and confusion. Need help? Use the help functions within the FAFSA form (including live chat) or call 1 -800 -4 -FED-AID. Don’t forget: watch for the confirmation page that says your FAFSA form has been submitted. THEN log out.

Documents needed on hand to complete the FAFSA

IRS DATA RETRIEVAL TOOL-USE IT!!!! • Utilize the IRS Data Retrieval Tool inside the FAFSA app, which allows applicants who have already filed their federal income tax returns to prefill the answers to some of the difficult FAFSA questions by transferring the necessary data directly from federal income tax returns. This tool prevents errors from being manually entered.

FAFSA TIPS… • SUPER IMPORTANT!!!!!“PRIOR” YEAR TAX INFO IS NOW USED INSTEAD OF PRIOR YEAR (So 2019 tax info for a fall 2021 college start) • THE FAFSA AND TAP ONLINE PORTALS NOW OPEN ON OCT. 1 INSTEAD OF JANUARY 1 • YOU AND ONE PARENT NOW SIGN YOUR FAFSA WITH YOUR FSA ID INSTEAD OF A 4 DIGIT PIN You can use this same FSA ID every year of college that you resubmit the FAFSA so keep track of it AS YOU MAY USE OT FOR TWO, FOUR OR SEVERAL MORE YEARS TO COME! • You can list up to ten colleges at a time to send your FAFSA data to but only 1 at a time on TAP. •

Don’t assume you won’t get aid. TRY!!! COMPLETE THE APPS!!! • Do not assume that you won’t qualify for financial aid. You might. All of you, regardless of how much money your parents make, will qualify for an unsubsidized Federal Direct Loan for $3500. You must complete the FAFSA to qualify for this government loan.

The FAFSA on average takes 38 minutes to complete. The software is very smart and if you have all of your documents in front of you, this form is not difficult to complete. Mae sure you apply for aid each year of college.

How do I apply for federal student aid? 4. Watch for response by e-mail or by mail, confirming that your FAFSA form was processed. • Double-check that your info is correct by logging on at the FAFSA site and reviewing your data. • Correct any mistakes and submit the corrected info. There is a “make a correction button”. • Don’t update info that was correct on the day you signed your FAFSA form.

SAR=Student Aid Report Around three days after you submit the FAFSA on-line, you will receive your “SAR” which stands for Student Aid Report. Typically, this is sent via e-mail if you supplied your e-mail when you filed your FAFSA. This report will tell you what your “EFC” (Expected Family Contribution) is calculated to be. It does not mean your parents actually WILL contribute that EFC amount. Check over your SAR and make any needed corrections. Keep a hard copy of your SAR for your records.

How do I apply for federal student aid? 5. Watch for e-mails or letters from the schools you are considering. E-mails are IMPORTANT for you to check frequently for IMPORTANT college info!!!! CONSIDER CREATING ONE NEW E-MAIL ACCOUNT JUST FOR YOUR COLLEGE, MILITARY, CAREER MESSAGES. • Give the schools any additional paperwork they ask for. Meet all deadlines or you could miss out on aid!

What is verification? During verification, the college financial aid office of a college will ask the applicant to supply copies of documentation, such as income tax returns, W-2 statements, divorce paperwork, death certificates, 1099 forms et cetera to validate, prove correctness or verify that the data that was submitted on the Free Application for Federal Student Aid (FAFSA) is true and correct. • Don’t worry if you are selected for verification. About 30% of students are selected for verification. • Follow through on sending and required documents or you will not be approved for your financial aid.

WHAT HAPPENS NEXT? 6. ***At the end of the FAFSA app when you have submitted it, there is a link to link on to continue to your state application in blue. OUR NYS app is called at the HESC website and is called TAP.

New YORK STATE SPECIFIC AID TAP= Tuition Assistance Program Grantbased on financial need Excelsior scholarship STEM scholarship

New York State Aid: 7. Apply for TAP on-line at https: //www. hesc. ny. gov/pay-for-college/apply-forfinancial-aid/nys-tap/apply-for-tap. html or Google HESC TAP

• IF YOU ARE APPLYING TO COLLEGES IN New York State and you reside in New York State, THEN APPLY FOR TAP Tuition Assistance Program) GRANT MONEY. • TAP is free grant money that can be anywhere from $0 -$5165. 00 of funding from New York State given to student who have financial need and who chose to attend a college within New York State. • The TAP Application Process Begins with Creation of Your 4 digit Hesc. PIN.

TAP tips…. • At the beginning of the online TAP application process you will be prompted to create a HESC-specific user name and personal identification number called a (Hesc. PIN 4 digit/# PIN). You will use your Hesc. PIN when "signing" your TAP application and when accessing your HESC account information in the future. If you forget to complete the TAP application at the end of submitting your FAFSA app, you must wait three days after filing your FAFSA and then you can log in and complete the TAP app on the HESC website. This is because a lot of your info is pulled over from the FAFSA database into your TAP account for you as the smart software sees that you live in New York State! • HESC will send you an e-mail notifying you to complete the TAP application online if you did not select the FAFSA link to TAP on the Web. •

NYS EXCELSIOR SCHOLARSHIP: Ø Up in the air for 2021 -22 Please see screenshot/info below taken from the HESC website at: https: //www. hesc. ny. gov/pay-for-college/financial-aid/types-of-financialaid/nys-grants-scholarships-awards/the-excelsior-scholarship. html

The Excelsior app is not yet open so on the HESC website, subscribe to this link:

NYS STEM SCHOLARSHIPS • The STEM Incentive Program is open to New York State high school students who graduate in the top 10 percent of their high school class, and pursue an approved STEM program at a public or private degree granting college or university, beginning with the fall semester following their high school graduation. • Above taken directly from the HESC website • Recipients can attend any public or private degree granting institution of higher education located in New York State. • The STEM app is not open. Check the HESC website for it periodically.

Other NYS-sponsored scholarships can be found at…. . https: //www. hesc. ny. gov/pay-forcollege/financial-aid/types-of-financialaid. html#horizontal. Tab 2

Don’t forget about…. . • College “institutional” aid: contact financial aid offices at specific schools you are considering or examine colleges’ financial aid webpages for detailed info • Scholarships: visit BRCS homepage>Departments>Gui dance>HS Guidance> Internal & External Scholarship pages

What happens next? • Evaluate schools’ aid offers. Examine closely your award letter from each college. Ask questions if your are unsure of how to interpret your awards as the letters can be confusing!!!! • Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid.

Financial Aid Award Letters • Each school will send you an award letter either on paper or inside your college online account telling you how much aid they will give you to cover the cost of attending their school. Each schools award letter may look different although your EFC amount will remain the same. You then will need to compare your award letters and see who will give you the best deal financially to help in determining which college you want to attend. You can accept all, part or none of the aid given by a school. Then once you select the college you wish to attend, you will sign and submit your acceptance of their financial aid award. Most schools give you until May 1 st to commit to their school and send in your award letter signed. (See the sample award letter on the next slide. )

Where can I get more info? Student. Aid. gov • Info about aid programs • Links to free scholarship and college searches • 1 -800 -4 -FED-AID or studentaid@ed. gov • Info about aid programs • Help with FAFSA form •

Long story short; ideas to consider…. . • 1. Apply for federal grants and loans with the FAFSA app. • 2. Apply for NYS funds on the HESC TAP app. • 3. Apply for Excelsior, STEM, and any other available scholarships. • 4. Review your financial award letters and make a wise decision and investment in your future. • 5. Apply for scholarships • 6. Get a summer job

Questions?

Ask for assistance if you need it! Contact information: • Mrs. Crandall-Bean, HS Counselor Phone: (585)928 -2985 Cell 585 -356 -5116 • E-mail: ccbean@bolivarrichburg. org • Microsoft Teams Chat • OR use the FAFSA, TAP help lines. OR contact your colleges’ financial aid offices for expert assistance and questions. •

Helpful links: • FAFSA: https: //studentaid. gov/apply-for-aid/fafsa/fillingout NYS TAP : https: //www. hesc. ny. gov/pay-for-college/apply -for-financial-aid/nys-tap/apply-for-tap • . html •